Brazilian Soybean Exports At Record Pace
Brazil has exported a record 19 MMT of soybeans in the first half of 2009, according to the Brazilian Trade Ministry. That's more than three-quarters of their anticipated exports for the entire year of 24.8 MMT.
Exporters have been keen to cash in on high Chicago prices, strong Chinese buying, the crop failure in Argentina and the large inverse between front-end and deferred month contracts.
Brazil is expected to utilise around 30 MMT domestically of it's 57 MMT soybean produced this year, leaving around 25 MMT to export, with a little bit left for carryover into 2010.
The phenomenal pace of Brazilian exports is pushing up domestic premiums, with August delivery Paranagua currently running at a premium of $1.40 per bushel over August in Chicago.
They will of course be conscious of a large US crop hitting the market in a couple of months time. With the problems in Argentina, this potentially leaves the US as the only shop in town during Q4 of 2009 and Q1 2010.
Exporters have been keen to cash in on high Chicago prices, strong Chinese buying, the crop failure in Argentina and the large inverse between front-end and deferred month contracts.
Brazil is expected to utilise around 30 MMT domestically of it's 57 MMT soybean produced this year, leaving around 25 MMT to export, with a little bit left for carryover into 2010.
The phenomenal pace of Brazilian exports is pushing up domestic premiums, with August delivery Paranagua currently running at a premium of $1.40 per bushel over August in Chicago.
They will of course be conscious of a large US crop hitting the market in a couple of months time. With the problems in Argentina, this potentially leaves the US as the only shop in town during Q4 of 2009 and Q1 2010.